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03.07.2024 06:59:25 - dpa-AFX: EQS-News: With 21.5 % quarterly growth, grenke achieves key milestone on path to target of over EUR 3 bn (english)
With 21.5 % quarterly growth, grenke achieves key milestone on path to
target of over EUR 3 bn
EQS-News: GRENKE AG / Key word(s): Miscellaneous
With 21.5 % quarterly growth, grenke achieves key milestone on path to
target of over EUR 3 bn
03.07.2024 / 06:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
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With 21.5 % quarterly growth, grenke achieves key milestone on path to
target of over EUR 3 bn
Baden-Baden, July 3, 2024: The second quarter of this year was the strongest
in grenke AG's history. In the April to June period, the global financing
partner for small and medium-sized enterprises significantly increased its
new leasing business by 21.5 % year-on-year to EUR 790.3 million (Q2 2023:
EUR 650.3 million).
Contribution margin 2 (CM2) - an indicator of new business profitability -
grew 19.4 % in the same period to EUR 130.9 million (Q2 2023: EUR 109.7
million). The CM2 margin held steady at 16.6 % compared to the same
prior-year period (Q2 2023: 16.9 %) and was clearly on track for the target
of slightly over 16.5 %.
Dr Sebastian Hirsch, CEO of grenke AG: "This outstanding quarter, with
growth in excess of 20%, is a milestone on the path to achieving our
ambitious annual target of over EUR 3 billion in new business. While this is
a very important achievement, we are not resting on our laurels but will
instead continue to build on this record performance."
Dr Martin Paal, CFO of grenke AG: "After completing the first two quarters,
we are right on target. Not only in terms of our new business but also our
profitability. With a solid CM2 margin of 16.6 %, we have increased our
absolute contribution margin by more than 19 % compared to the prior year.
We expect to continue to see strong growth in the second half of the year
and a steady margin. We have already laid the important foundation for this
with our recent placement of a new EUR 500 million benchmark bond at
favourable terms."
Demand for green economy objects remains strong - continuous expansion of
the reseller network
Green economy objects contributed strongly again to new leasing business in
Q2 2024, with every fifth leasing contract (20.5 %) originating from this
object category (Q2 2023: 21.9 %). The main drivers were eBikes, water
treatment systems and solar systems. The international sales network
continued to be expanded and now comprises over 37,000 resellers (Q2 2023:
34,700). The direct customer business as a share of the total leasing
business remained essentially unchanged at 17.1 % (Q2 2023: 17.0 %).
Southern Europe is the strongest region ahead of Western Europe
Southern Europe was the strongest region, growing 34.4 % to EUR 197.3
million (Q2 2023: EUR 146.9 million), representing a 25.0 % share of the new
leasing business. The largest share of new leasing business, accounting for
more than half of the new leasing business in Southern Europe, originated
from Italy with growth of 47.8 %. Western Europe (excluding DACH) was in
second place with growth of 15.3 % to EUR 197.2 million (Q2 2023: EUR 171.0
million), representing a 24.9 % share of new leasing business, which almost
matched the share contributed by Southern Europe. France, in turn, accounted
for the largest share in this region and contributed 19.3 % of grenke's
total new leasing business. The DACH region followed in third place, with
year-on-year growth of 11.1 % and new leasing business of EUR 182.7 million
(Q2 2023: EUR 164.5 million). The Northern/Eastern Europe region recorded
growth of 25.3 % to EUR 164.6 million (Q2 2023: EUR 131.3 million). Denmark
and Romania performed particularly well, with grenke increasing its new
business in those countries by a respective 52.8 % and 38.5 % in the second
quarter of 2024. The other regions recorded growth of 32.5 % to EUR 48.5
million (Q2 2023: EUR 36.6 million). This category includes the future
markets of the USA, Canada and Australia.
Leasing demand remains high
Demand for lease financing solutions among SMEs remains strong. In the
second quarter, grenke registered around 167,000 lease applications,
compared to around 150,000 in the same prior-year quarter, and concluded
around 87,000 new lease contracts (Q2 2023: around 79,000). The conversion
rate was largely stable year-on-year at 51.9 % (Q2 2023: 52.6 %). At EUR
9,125, the average ticket size remained under EUR 10,000 (Q2 2023: EUR
8,274).
Factoring business grows; steady deposit business at grenke Bank
The factoring business held for sale achieved growth of 11.3 % in the second
quarter of 2024, equivalent to new business volume of EUR 228.7 million (Q2
2023: EUR 205.4 million).
grenke Bank's new lending business, which largely consists of the
microcredit business, totalled EUR 9.0 million in the reporting period (Q2
2023: EUR 11.0 million). As of June 30, 2024, the deposit business amounted
to EUR 1,657 million, corresponding to an increase of 2.5% since the turn of
the year (December 31, 2023: EUR 1,617 million).
In a short interview, CFO Dr Martin Paal elaborates on the new business
figures for the second quarter: https://youtu.be/hPO0VjFL13w
The report for the second quarter and first half of 2024 will be published
on August 8, 2024.
Overview of new business (in EUR millions)
Leasing regions: DACH: Austria, Germany, Switzerland
Western Europe without DACH: Belgium, France, Luxembourg, Netherlands
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
Northern | Eastern Europe: Denmark, Finland, Ireland, Latvia, Norway,
Sweden, UK | Czechia, Hungary, Poland, Romania, Slovakia
Other regions: Australia, Brazil, Canada, Chile, Singapore*, Turkey*, UAE,
USA
*New leasing business was discontinued in 2023.
Factoring regions: DACH: Germany, Switzerland
Northern | Eastern Europe: Hungary, Ireland, Poland, UK
Southern Europe: Italy, Portugal
grenke announced its intention to sell the factoring companies on January
31, 2024.
Further information is available from
Investor contact
Team Investor Relations
Neuer Markt 2
76532 Baden-Baden
+49 7221 5007 8611
investor@grenke.de
Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
+49 171 2020300
presse@grenke.de
Access to the press portal:
www.grenke.com
About grenke
The grenke Group (grenke) is a global financing partner for small and
medium-sized companies. As a one-stop shop for customers, grenke's products
range from flexible small-ticket leasing and demand-driven bank products to
convenient factoring. Fast and easy processing and personal contact with
customers and partners are at the centre of grenke's activities. Founded in
1978 in Baden-Baden, the Group operates in more than 30 countries and
employs approximately 2,100 staff (measured in terms of full-time
equivalents) worldwide. grenke shares are listed on the Frankfurt Stock
Exchange (ISIN DE000A161N30).
---------------------------------------------------------------------------
03.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1938353 03.07.2024 CET/CEST
target of over EUR 3 bn
EQS-News: GRENKE AG / Key word(s): Miscellaneous
With 21.5 % quarterly growth, grenke achieves key milestone on path to
target of over EUR 3 bn
03.07.2024 / 06:59 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
With 21.5 % quarterly growth, grenke achieves key milestone on path to
target of over EUR 3 bn
* New leasing business in the second quarter grows 21.5 % year-on-year to
a record
EUR 790.3 million (Q2 2023: EUR 650.3 million)
* Contribution margin 2 (CM2) increases 19.4 % to EUR 130.9 million (Q2
2023: EUR 109.7 million)
Baden-Baden, July 3, 2024: The second quarter of this year was the strongest
in grenke AG's history. In the April to June period, the global financing
partner for small and medium-sized enterprises significantly increased its
new leasing business by 21.5 % year-on-year to EUR 790.3 million (Q2 2023:
EUR 650.3 million).
Contribution margin 2 (CM2) - an indicator of new business profitability -
grew 19.4 % in the same period to EUR 130.9 million (Q2 2023: EUR 109.7
million). The CM2 margin held steady at 16.6 % compared to the same
prior-year period (Q2 2023: 16.9 %) and was clearly on track for the target
of slightly over 16.5 %.
Dr Sebastian Hirsch, CEO of grenke AG: "This outstanding quarter, with
growth in excess of 20%, is a milestone on the path to achieving our
ambitious annual target of over EUR 3 billion in new business. While this is
a very important achievement, we are not resting on our laurels but will
instead continue to build on this record performance."
Dr Martin Paal, CFO of grenke AG: "After completing the first two quarters,
we are right on target. Not only in terms of our new business but also our
profitability. With a solid CM2 margin of 16.6 %, we have increased our
absolute contribution margin by more than 19 % compared to the prior year.
We expect to continue to see strong growth in the second half of the year
and a steady margin. We have already laid the important foundation for this
with our recent placement of a new EUR 500 million benchmark bond at
favourable terms."
Demand for green economy objects remains strong - continuous expansion of
the reseller network
Green economy objects contributed strongly again to new leasing business in
Q2 2024, with every fifth leasing contract (20.5 %) originating from this
object category (Q2 2023: 21.9 %). The main drivers were eBikes, water
treatment systems and solar systems. The international sales network
continued to be expanded and now comprises over 37,000 resellers (Q2 2023:
34,700). The direct customer business as a share of the total leasing
business remained essentially unchanged at 17.1 % (Q2 2023: 17.0 %).
Southern Europe is the strongest region ahead of Western Europe
Southern Europe was the strongest region, growing 34.4 % to EUR 197.3
million (Q2 2023: EUR 146.9 million), representing a 25.0 % share of the new
leasing business. The largest share of new leasing business, accounting for
more than half of the new leasing business in Southern Europe, originated
from Italy with growth of 47.8 %. Western Europe (excluding DACH) was in
second place with growth of 15.3 % to EUR 197.2 million (Q2 2023: EUR 171.0
million), representing a 24.9 % share of new leasing business, which almost
matched the share contributed by Southern Europe. France, in turn, accounted
for the largest share in this region and contributed 19.3 % of grenke's
total new leasing business. The DACH region followed in third place, with
year-on-year growth of 11.1 % and new leasing business of EUR 182.7 million
(Q2 2023: EUR 164.5 million). The Northern/Eastern Europe region recorded
growth of 25.3 % to EUR 164.6 million (Q2 2023: EUR 131.3 million). Denmark
and Romania performed particularly well, with grenke increasing its new
business in those countries by a respective 52.8 % and 38.5 % in the second
quarter of 2024. The other regions recorded growth of 32.5 % to EUR 48.5
million (Q2 2023: EUR 36.6 million). This category includes the future
markets of the USA, Canada and Australia.
Leasing demand remains high
Demand for lease financing solutions among SMEs remains strong. In the
second quarter, grenke registered around 167,000 lease applications,
compared to around 150,000 in the same prior-year quarter, and concluded
around 87,000 new lease contracts (Q2 2023: around 79,000). The conversion
rate was largely stable year-on-year at 51.9 % (Q2 2023: 52.6 %). At EUR
9,125, the average ticket size remained under EUR 10,000 (Q2 2023: EUR
8,274).
Factoring business grows; steady deposit business at grenke Bank
The factoring business held for sale achieved growth of 11.3 % in the second
quarter of 2024, equivalent to new business volume of EUR 228.7 million (Q2
2023: EUR 205.4 million).
grenke Bank's new lending business, which largely consists of the
microcredit business, totalled EUR 9.0 million in the reporting period (Q2
2023: EUR 11.0 million). As of June 30, 2024, the deposit business amounted
to EUR 1,657 million, corresponding to an increase of 2.5% since the turn of
the year (December 31, 2023: EUR 1,617 million).
In a short interview, CFO Dr Martin Paal elaborates on the new business
figures for the second quarter: https://youtu.be/hPO0VjFL13w
The report for the second quarter and first half of 2024 will be published
on August 8, 2024.
Overview of new business (in EUR millions)
Q2 Q2 in Q1-Q2 Q1-Q2 in
2024 2023 % 2024 2023 %
New leasing business 790.3 650.3 21.5 1,460.1 1,260.5 15.8
DACH 182.7 164.5 11.1 321.3 307.5 4.5
Western Europe without 197.2 171.0 15.3 384.6 332.9 15.5
DACH
Southern Europe 197.3 146.9 34.4 364.7 297.2 22.7
Northern/Eastern Europe 164.6 131.3 25.3 299.5 254.8 17.6
Other regions 48.5 36.6 32.5 90.0 68.1 32.2
Contribution margin 2
(CM2) for new leasing
business
130.9 109.7 19.4 243.6 211.7 15.1
DACH 24.0 21.7 10.3 42.8 39.6 7.9
Western Europe without 34.2 30.0 14.1 67.3 58.7 14.5
DACH
Southern Europe 32.8 26.6 23.3 60.2 53.0 13.4
Northern/Eastern Europe 29.2 23.8 22.6 53.7 46.3 16.0
Other regions 10.7 7.5 42.6 19.7 14.1 40.3
CM2 margin (in %) 16.6 16.9 -0.3p- 16.7 16.8 -0.1-
p pp
New factoring business 228.7 205.4 11.3 441.6 397.4 11.1
DACH 73.6 76.5 -3.9 146.2 149.7 -2.3
Northern/Eastern Europe 94.7 85.1 11.3 186.5 167.0 11.7
Southern Europe 60.4 43.8 38.0 108.9 80.7 34.9
grenke Bank
New lending business 9.0 11.0 -18.0 17.7 23.8 -25.-
5
Leasing regions: DACH: Austria, Germany, Switzerland
Western Europe without DACH: Belgium, France, Luxembourg, Netherlands
Southern Europe: Croatia, Italy, Malta, Portugal, Slovenia, Spain
Northern | Eastern Europe: Denmark, Finland, Ireland, Latvia, Norway,
Sweden, UK | Czechia, Hungary, Poland, Romania, Slovakia
Other regions: Australia, Brazil, Canada, Chile, Singapore*, Turkey*, UAE,
USA
*New leasing business was discontinued in 2023.
Factoring regions: DACH: Germany, Switzerland
Northern | Eastern Europe: Hungary, Ireland, Poland, UK
Southern Europe: Italy, Portugal
grenke announced its intention to sell the factoring companies on January
31, 2024.
Further information is available from
Investor contact
Team Investor Relations
Neuer Markt 2
76532 Baden-Baden
+49 7221 5007 8611
investor@grenke.de
Press contact
Stefan Wichmann
Neuer Markt 2
76532 Baden-Baden
+49 171 2020300
presse@grenke.de
Access to the press portal:
www.grenke.com
About grenke
The grenke Group (grenke) is a global financing partner for small and
medium-sized companies. As a one-stop shop for customers, grenke's products
range from flexible small-ticket leasing and demand-driven bank products to
convenient factoring. Fast and easy processing and personal contact with
customers and partners are at the centre of grenke's activities. Founded in
1978 in Baden-Baden, the Group operates in more than 30 countries and
employs approximately 2,100 staff (measured in terms of full-time
equivalents) worldwide. grenke shares are listed on the Frankfurt Stock
Exchange (ISIN DE000A161N30).
---------------------------------------------------------------------------
03.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: GRENKE AG
Neuer Markt 2
76532 Baden-Baden
Germany
Phone: +49 (0)7221 50 07-204
Fax: +49 (0)7221 50 07-4218
E-mail: investor@grenke.de
Internet: www.grenke.de
ISIN: DE000A161N30
WKN: A161N3
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1938353
End of News EQS News Service
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1938353 03.07.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
GRENKE AG NA O.N. | A161N3 | Xetra | 25,650 | 05.07.24 14:45:36 | +0,950 | +3,85% | 25,600 | 25,700 | 25,250 | 24,700 |
